Could the massive bull run that took place during the summer of 2017 been spurned on by major buying volume from Peter Thiel’s Founders Fund? Perhaps so, as a new report from The Wall Street Journal confirms the Founders Fund dropped millions of dollars into bitcoin just months ago.
Bet Pays Off So Far for Thiel
According to sources with inside knowledge of the situation, Founders Fund — co-ran by Thiel — has purchased “millions of dollars” worth of bitcoins since at least the middle of 2017.
Thiel — who’s famous for being a co-founder of PayPal and an early investor in Facebook — is now a confirmed early believer in Bitcoin, at least relatively speaking.
Per the WSJ:
“[Thiel’s] bet has been spread across several of the firm’s most recent funds, the people said, including one that began investing in mid-2017 and made bitcoin one of its first investments.”
Indeed, altogether Founders Fund’s bitcoin investments in 2017 amounted to over $15 million USD. In a recent report to investors, the firm said this initial investment sum has now exploded into the “hundreds of millions of dollars” on the heels of the bitcoin price rally in the second half of 2017.
The confirmation of Thiel’s hand in Bitcoin is perhaps ultimately unsurprising, as the venture capitalist commented back in the fall that “If bitcoin ends up being the cyber-equivalent of gold it has a great potential left.”
And, with Thiel being a general trendsetter in Silicon Valley, it’s all but certain that others will follow in his stead in the weeks ahead.
Perfect Time to Get In?
Per Bitsonline‘s resident technical analyst Ramiro Burgos’ latest report, the bitcoin price now seems poised to make a sustained, long-term rally toward the astonishing $50,000 USD milestone.
If this incredible surge materializes, Thiel and his fellow investors will join the Winklevoss twins as being confirmed “Bitcoin Billionaires.” And the move would surely go down as one of the more impressive speculative bets in financial history.
Conversely, if the bitcoin price were to tank and never recover in the coming months, Thiel and the Founds Fund will have been burned in more ways than one.
If Burgos’ TA holds up, though, Thiel and his associates may very well be ecstatic this time next year.
What do you think? Are you surprised or not surprised by Thiel’s move? Is 2018 going to be a huge year for the bitcoin price, or are you feeling bearish?
Images via Bitsonline, Variety